Lack of cloud expertise threatens loss of revenue

Large companies in Switzerland may be losing revenue because 82 percent of IT decision-makers do not have the necessary cloud expertise. Globally, large enterprises lose more than $250 million annually due to knowledge gaps on the subject of the cloud. This is shown by a new study conducted by Rackspace in collaboration with researchers from the London School of Economics and Political Science (LSE). 950 IT decision-makers and 950 IT professionals were surveyed, and there were conducted detailed interviews with IT executives.

Lack of cloud expertise inhibits innovation

The study also found that this lack of expertise hinders creativity. For example, 47 percent of IT pros say they could bring greater innovation to their organizations with the right cloud knowledge. Thirty-nine percent of IT decision makers believe their company is lagging behind in installing cloud platforms due to a lack of skills. In addition, 79 percent said they need to invest more in their workforce to meet the evolving demands of cloud computing.

John Engates, chief technology officer at Rackspace, says, "With the advent of artificial intelligence and automation, some believe human knowledge is less important. Our study proves this is not the case. With technology and cloud now supporting business transformation, the growing knowledge gap means organizations must have a strategy in place to access the experience they need. Otherwise, they will struggle to compete and innovate."

The realities of modern IT

IT decision makers are realizing the benefits of migrating all or part of their IT to the cloud. In fact, 44 percent of respondents say their company already has a positive return on investment (ROI) from cloud adoption. Another 46 percent expect the cloud to deliver a positive ROI in the future. Despite the benefits, IT pros and IT decision makers are frustrated by their inability to realize the full potential of the cloud:

• 44 percent of IT pros spend more time than expected managing day-to-day cloud processes

• 52 percent of IT decision makers recognize that a lack of expertise is holding back their business

• 81 percent of IT pros say detailed cloud knowledge within their organization would help them increase cloud ROI

The most needed cloud skills

For half of IT decision makers (50 percent), hiring the right professionals to help them manage the cloud is difficult. Native cloud app development (43 percent) is the most difficult skill to find, according to IT decision makers, followed by project management for migrations and cloud security (40 percent each). The biggest hurdles to hiring are:

• Companies cannot provide enough training or career opportunities (28 percent each)
• The positions are not attractive enough because they are focused on maintenance (24 percent)
• Industry-wide competition for skilled workers (22 percent)

What IT professionals expect from their new position can offer companies some clues when competing for new employees. While salary and benefits are most important (62 percent), career opportunities within the company (41 percent) and the chance to work on interesting projects (37 percent) are also high on the list. This shows that companies should not only look at attractive salaries to get and keep skilled workers.

However, 56 percent of IT decision-makers want to increase their company's cloud usage over the next five years, and 39 percent have concerns about retaining skilled workers. Thus, workforce development challenges are likely to increase. This is exacerbated by the fact that it takes "several weeks or longer" to train new employees, according to the majority of IT decision makers (84 percent). 22 percent need "months" for training and onboarding new colleagues.

Overcoming the challenges

Based on the study, some tips have been compiled on how companies can address the cloud knowledge gap:

• Breakdown of IT functions into individual streams: The concept of splitting IT functions into two areas enables companies to focus on the priorities of business- and process-oriented digital innovation. Both are important for companies to succeed in a technology-led market.
• Develop a cloud skills strategy: Every IT leader should implement a strategy that matches current skills in the organization with future innovation trends and changes (both in the business and in the cloud). They should compare this with realistic market analyses of the available skilled workforce.
• Complete cloud system assessment: Enterprises should develop a comprehensive approach to the provision of basic cloud services (for example, provider risk bundling). The business and process-oriented challenges can be overcome much more easily through constant improvements and significant innovations if the company relies on a balanced pool of skills and competencies within and outside its own boundaries.

Mariano Mamertino, EMEA Economist at global job board Indeed, comments, "Finding, hiring and retaining technology professionals is critical to success for businesses, but it is becoming increasingly difficult to find the talent they need as the corresponding demand increases. Our data shows that there is a global mismatch between cloud positions advertised and those sought by IT professionals. This could further widen the cloud knowledge gap. As this new study shows, a funding and innovation gap exists for businesses worldwide that needs to be plugged."

Source: Rackspace